Hi! New to personal finance sub, but am hoping to get support in figuring out if balance transfer is right for me. I currently have $9,600 in debt on a credit card with a 24.26% interest rate. I accrued most of this debt while I was unemployed for almost a year, but since getting a stable job I have been chipping at the balance and managed to get it down from the $17,000 it was at last year. I’m thinking of doing a debt transfer to the Wells Fargo Active Cash Rewards card with the 0% APR rate for 15 months. I’m currently paying at least $800 a month towards the debt but about $300 of that ends up going to interest anyways. This card has a 3% transfer rate but it’ll be worth it in exchange for the 0% APR for 15 months.
I just don’t know if there are downsides to doing a balance transfer and also what are things to be careful of during the payoff period? I feel confident in being able to pay the balance off in 15 months, but want to be as prepared before doing the transfer.
original posted by justtryingtodothings to r/personalfinance on Mon, 04 Mar 2024 09:02:58 GMT.